ADVERTISEMENT



Google       

Home -> Law Blog Directory -> Academic Blogs -> Conglomerate

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Bookmark

Academic

: Conglomerate

The SEC's New Proposal on Shareholder Director Nominations

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

ADVERTISEMENTS

The SEC is proposing amendments to the proxy rules to allow for shareholder nominations of directors. Mary Shapiro's announcement speech is here. (text) NYT story here.

A broad description from Shapiro:

Under the proposal before us today, shareholders who otherwise have the right to nominate directors at a shareholder meeting will be able to have their nominees included in the company proxy ballot that is sent to all voters. Given the reality of how the proxy process works, this would turn what would otherwise be a somewhat illusory right to nominate into something that is real ? and has a real chance of holding boards of directors accountable to company owners.


I haven't seen the proposal, yet, but a Bloomberg story offers some intriguing details:

The U.S. Securities and Exchange Commission may let investors owning 1 percent of the biggest companies nominate directors on proxy statements....

SEC commissioners voted 3-2 [with Kathleen L. Casey and Troy A. Paredes dissenting] today to seek public comment on the proposal, which applies to companies with market values exceeding $700 million. Investors would have to own a larger proportion of shares to nominate directors at smaller companies.

Under the SEC?s proposal, shareholders would face limits on how many directors they could nominate. If a board had three members, shareholders could recommend one director. If a board had more than three members, then shareholders would be restricted to nominating 25 percent of the board.


I was not a fan of the previous proxy access proposal, but this one sounds more promising. I will follow up with some detailed analysis in later posts.

Full post as published by Conglomerate on May 20, 2009 (boomark / email).

Bloggers, promote your law blog by nominating your blog for inclusion in USLaw.com's Law Blog Directory and RSS Reader. Benefits described.
Lawsuits and Settlements

Investor Fraud
Company president and director Gregory William Rivers to pay $10,000 shareholder fraud settlement.

Marvell
Settles Shareholder Class Action for $72 Million

Comverse Shareholder Settlement Agreed at $225 Million
Comverse Shareholder Settlement Agreed at $225 Million

Securities Fraud
TOP Ships agrees to $1.2 million shareholder class action settlement.

Shareholder Settlement
R&G Financial Corporation agrees to $39 million securities fraud class action settlement.

Related Searches

























































































































US Law
#1 Online Legal Resource













Your Blog Subscriptions
Subscribe to blogs

10,000+ Law Job Listings
Lawyer . Police . Paralegal . Etc
Earn a law-related degree
Are you the author of this blog? Adding USLaw.com to your Blogroll increases relevance. You qualify to display a USLaw Network badge.
Suggest changes to this blog's description or nominate another for inclusion. Register for updates.


Practice Area
Zip Code:

Contact a Lawyer Now!






0.0022 secs (from cache 10/31/26 13:20:11)